Tag: title loans

10
Aug

Start a Title Loan Business?

Want to start start a car title loan business?

This simple approach works! You want to learn how to start a title loan business? We offer all the information you need in our “How to Start a Car Title Loan Business Manual.”

Start Car Title Loan Business

Start a Title Loan Biz

One easy method we discuss? Place an ad on Craigslist for an employee. Get applications and then meet the candidates at Starbucks. It’s common for this tactic to result in a 60 minute meeting with an experienced car title loan employee who will “spill their guts” and reveal every strategy your future car title loan competitor is using to profit lending $$ on car titles.

You may even hire one of these candidates for your own new car title loan business! Or, find an experienced partner! It’s happened to us many times over the 15+ years we’ve been in the car title loan and payday loan industry.

Now, I’m not suggesting you take advantage of these applicants. Narrow down the candidates to those with real car title loan experience. Tell them you’re researching the title loan space and have not yet decided to start.

At the end of the meeting, offer to pay them for their time. If you learned a lot about the car title loan space, it’s fair to give them a check for $50 – $100 for their time and information. This is your call! It’s about integrity!! I am HAPPY to pay for good information. I think of it as an investment. And paying a great car title loan resource $100 for 60 minutes of their time makes a GREAT deal of sense to me! And again, if you “pull the trigger” and start a car title loan business, this applicant could play a key role in your success!

Here’s a very basic sample script for a “Title Loan Employee Wanted:”

  • Title Loan Rep 

    compensation: will discuss
    employment type: full-time

    Qualifications:Bilingual must peak English/ Spanish
    Have a High School Diploma or GED
    At least 1 year experience in Title Loan Industry
    Reliable transportation
    Detail oriented and have the ability to multi-task
    Employment stability
    Please email your resume!!!

Meanwhile, here’s a chapter-by-chapter description of our 300+ page Manual on “How to Start or Improve a Car Title Loan Business” and make money by lending money on titles to automobiles.

31
Jul

Car Title Loan Business License & Profits

Car Title Loan Business, License & Profits.

Consumers today are in need of quick access to cash without having to jump through hoops. Demand for car title loans continues to increase while “big brother” attempts to put a stop to it. To entrepreneurs on the “outside,” it’s becoming more difficult to start a car title loan business much less operate one without running afoul of the law.

This is an error in perception. Car title loan businesses can be highly profitable. Witness TMX Finance as but one example. Even in a state such as Florida, where the car title loan laws can be a challenge, the creative Team at TMX Finance manage to offer car title loan products. From its Georgia headquarters, TMX Finance operates more than 1,470 stores in 18 states with plans to grow by more than 20 percent each year through 2017.

How to start a title loan business

TMX Finance Car Title

Of course, there are those who question the TMX Finance car title loan product. They rant and rave about the 100%+ APR. But their car title loan customers don’t complain. More and more consumers caught in a financial challenge seek out TMX Finance and the rest of us to solve their emergency.

Yes, there are always a few knucklehead consumers who abuse the product. Be it a loan, a drug, alcohol, sex, chocolate, Coca Cola… someone somewhere is going to misuse our services.

And, of course, there are product and service providers who take advantage of consumers as well. Witness the front page of the Wall Street Journal every day. Banks, hedge funds, car makers, drug companies, and yes LENDERS do stupid things.

Malcolm Gladwell refers to them as “Outliers.”

But does this mean all these loan product offerings should be outlawed? Certainly not. New entries into the lending industry are appearing almost daily. Technology combined with “big data” underwriting are enabling entrepreneurs to offer financial products to consumers at rates that make sense given the circumstance. At the other end of the scale, your local title loan lender/payday loan providers – now called installment loan lenders – still remain. Why? Because they’re needed. Because of DEMAND! Because the solo-store lender can still make a good profit AND serve her neighbors in need.

Typically, a car title loan is 30 days in duration. Borrowers give the title to their cars, RV’s, boats, motorcycles… for a loan ranging from $100 to several thousand dollars. On the due date, the borrower can pay the interest/fee and renew the loan for the amount of the principal. If the borrower defaults on the loan, the lender can repossess and eventually auction the car to get their loan principal back.

What the anti-title loan contingent doesn’t realize is that we don’t want the car. We would rather “work” with our customer and get them back on track. If this means waiving a late fee or helping our title loan customer avoid a series of NSF’s we’re more than willing.

Fees paid by title loan borrowers are generally in the 8% to 20% per month range. Borrow $1000 for 30 days and it will cost you $80 to $200 per month. These fees are clearly and plainly discussed with each car title loan borrower. No one puts a gun to the head of a borrower. And, despite the claims of our adversaries, we don’t hide the fees or use a 6pt font to disclose the fees.

In Florida, the max interest rate on a title loan is 30%. TMX changed the format of its loans, charging borrowers the maximum interest rate, and then typically adding fees for two types of insurance.  One of the policies reimburses InstaLoan if the car (collateral) is damaged. Borrowers who can’t repay their loans must pay fees for a new round of insurance each month to keep their cars.

This Florida lending strategy can achieve an effective annual APR rate of 100+ percent. It enables TMX Finance to continue to serve customers in need. The insurance sold through InstaLoan is provided by Lyndon Southern Insurance Co., a subsidiary of the publicly traded Fortegra Financial Corp.

Do your homework to apply for a car title loan business! Florida title lender applicants seek a license from the Florida Office of Financial Regulation. The lender registers under a statute for for consumer finance companies that offer longer-term installment loans. The title lender law bans the inclusion of insurance with loans. The consumer finance law doesn’t. Our “Car Title Bible” covers each state. If they already exist in your State, you know they’re legal.

How to Start Title Loan Biz

How to Start Title Loan Biz

Bottom line? Car title loan products are in demand. Title loan lenders can make a profit and serve their neighbors without abusing them. Lacking your local car title lender, where does a borrower of a few hundred to a few thousand dollars go? Hopefully, their first stop will not be a gun shop! To learn how to start your own car title loan business in any state, check out our “How to Start a Car Title Loan Bible.”

 

 

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